STOCK MARKET INVESTING By Trading Strategies

TRADING STRATEGIES

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World is full of variety and variants. 

Like different colors in rainbow. 

Different taste in foods.

Different trees in forest.

Different smell in flowers. etc...

Similar way, in trading also there are different trading strategies used by different market participants. This strategy defines traders trading style. Its time frame may be within a day, within a week or a month etc..

So Lets check out!

Types of Trading Strategies - 

1. Day Trading

2. Positional Trading

3. Swing Trading

4. Scalping Trading / Speculating

Day Trading - In this trading style the trader makes position at the start of day and close the position on same day before STOCK MARKET closing.

Suppose we bought / sold 100 shares of XYZ company today and bought / sold all 100 shares today before closing of market. May in profit or loss but closed position today itself.

Positional Trading - In Positional  trading the trader make position at the start of day and close it on next day, next week or next month.

Short Term Position - one day or one week position is short term position.

Suppose we bought / sold 100 shares of XYZ company today and bought / sold all 100 shares tomorrow or day after tomorrow or may be next week.

Long Term Position  - More than a month to a year is Long term position.

Suppose we bought / sold 100 shares of XYZ company today and bought / sold all 100 shares after 2 or 3 month or be may be next year.

Swing Trading - In this Swing trading with the help of technical analysis we take position for few days to few weeks to get maximum profit.

Suppose we bought / sold 100 shares of XYZ company today with proper study with the help of technical chart with pre-decided the direction of trade (upward / downward ) and then bought / sold all 100 shares after 2 or 3 day to a week based on pre-decided profit gain.

Scalping Trading / Speculating - In this Scalping trading we take profit of small changes in the price when it become totally profitable.

Suppose we bought / sold 100 shares of XYZ company with proper study with the help of technical chart and bought / sold all 100 shares with on small profit levels. Then again  repeat the trade for small profit with small time repeatedly in a day.

Disclaimer : This article is only for knowledge and information sharing and for any type of recommendation.